4-1
4-2
Future Value
Deposit Amount
Interest Rate
Compounding Periods per Year
Number of Years
Total Number of Periods
Future Value
($10,000.00)
10.00%
1
5
5
$16,105.10
Present Value
Future Value Amount
Interest Rate
Compounding Periods per Year
Number of
5-4
Given:
Risk free rate
Inflation current year
Inflation next year
Inflation third year
2-year
Inflation current year
Inflation next year
Average inflation
Yield on 2-yr Treasurry security
3-year
Inflation current year
Inflation next year
Inflation thir
Chapter 4 Homework
FIN324X
Courtney Burns
1. FV=$700(1+0.04)4=$818.90
2. FV=$2,500(1+0.06)15=$5,991.40
5. PV=$1,500/(1+0.05)14=$757.60
PV=$1,500/(1+0.10)14=$395.00
A higher interest rate allows for a higher return on investment, while a lower interest rat
Chapter 11 Homework
FIN324X
Courtney Burns
1 Face Value
Years to Maturity
Interest (Annual)
Current Selling Price
Marginal Tax Rate
Coupon Rate
Cost of Debt
3 Par Value
Dividend
Current Market Value
Expected Selling Price
Marginal Tax Rate
Cost to Issue P
Erin Potts
11/11/16
Assignment 7.1 - Homework
1. What are the (a) expected return .038, .063, .004, (b) standard deviation 2.60, and (c)
coefficient of variation for an investment with the following probability distribution? .39
4. Suppose you are an aver
Erin Potts
10/21/16
Financial Management 4.1
1. If Samantha invests $700 today in an account that pays 4 percent interests compounded
annually, how much will she have in her account four years from today? $818.90
2. Fifteen years ago, your parents purchas
Erin Potts
10/4/16
Homework #2
3-3. Do you think investors can earn abnormal returns in financial markets that are at least semi
strong- form efficient?
In the book it states that it would do no good to scrutinize a companys reports that
state abnormal re
Erin Potts
10/26/16
Assignment 5.1
1. Yesterday Travis sold 1,000 shares of stock that he owned for $29 per share. Travis
purchased the stock one year ago for $28 per share. During the year, Travis received a
quarterly dividend equal to $0.10 per share. W
Erin Potts
9/30/16
Homework #1
1-5. What is the difference between stock price maximization and profit maximization? Under what
conditions might profit maximization not lead to stock price maximization?
According to the book the two connect when looking a
Erin Potts
11/2/16
Financial Management 6.1
4. Lightning Electrics outstanding bond has a $1,000 maturity value and a 4.5 percent coupon
rate of interest (paid semiannually). The bond, which was issued five years ago, matures in 10
years. If investors req
12-1. Broussard Skateboards sales are expected to increase by 15% from $8 million in 2013 to $9.2
million in 2014. Its assets totaled $5 million at the end of 2013. Broussard is already at full capacity, so its
assets must grow at the same rate as project
Chapter:
Problem:
5
24
A 20-year, 8% semiannual coupon bond with a par value of $1,000 may be called in 5 years at a call price of $1,040.
The bond sells for $1,100. (Assume that the bond has just been issued.)
Basic Input Data:
Years to maturity:
Periods
Drop Box OCM 1.3 Problems Dropbox Chapter 2
2.1
Given: Before tax bond yield=9% and Tax=36%
So we get: After tax yield=9 %*( 1-36%) =5.76%
2.2
Given: corporate bond yield=8% and municipal bond yield=6%
In order to make the after tax bond yield the same fo
Drop Box OCM 1.3 Problems Dropbox Chapter 2
2.1
Given: Before tax bond yield=9% and Tax=36%
So we get: After tax yield=9%*(1-36%)=5.76%
2.2
Given: corporate bond yield=8% and municipal bond yield=6%
In order to make the after tax bond yield the same for t
2-1. An investor recently purchased a corporate bond that yields 9%. The investor is in the 36%
combined federal and state tax bracket. What is the bonds after-tax yield?
9% * 36%=3.24%,
9%-3.24%=5.76%6%
The after-tax yield of this bond is 6%.
2-2. Corpor
12/7/2012
Chapter:
Problem:
10
23
Gardial Fisheries is considering two mutually exclusive investments. The projects' expected net cash
flows are as follows:
Time
0
1
2
3
4
5
6
7
Expected Net Cash Flows
Project A Project B
($375)
($575)
($300)
$190
($200)
4-1. Greene Sisters has a DSO of 20 days. The companys average daily sales are $20,000.
What is the level of its accounts receivable? Assume there are 365 days in a year.
DSO = Receivables/ Average sales per day = Receivables/ (Annual sales/365) = 20 days
Chapter:
Problem:
12
10
Start with the partial model in the file Ch12 P10 Build a Model.xls on the textbooks Web site, which contains the
2013 financial statements of Zieber Corporation. Forecast Zeiber's 2014 income statement and balance sheets. Use
the
12/7/2012
Chapter:
Problem:
6
15
a. Use the data given to calculate annual returns for Goodman, Landry, and the Market Index, and then
calculate average returns over the five-year period. (Hint: Remember, returns are calculated by
subtracting the beginnin
10-1. A project has an initial cost of $40,000, expected net cash inflows of $9,000 per year for 7 years, and
a cost of capital of 11%. What is the projects NPV? (Hint: Begin by constructing a time line.)
Discount rate = 11%. Cash flow 0= -40000. Cash flo
9.2 LL Incorporateds currently outstanding 11% coupon bonds have a yield to maturity of 8%. LL believes
it could issue new bonds at par that would provide a similar yield to maturity. If its marginal tax rate is
35%, what is LLs after-tax cost of debt?
An
6.6 If a companys beta were to double, would its expected return double?
Answer: No, if a companys beta were to double the expected return wouldnt double.
6.1 An individual has $35,000 invested in a stock with a beta of 0.8 and another $40,000 invested
in
Outline the pros and cons of each of the following exchange rate forecasting techniques:
technical, fundamental, market-based, and mixed. Which technique would you use if you were
hired by an MNC to forecast exchange rates? Explain the reasons why you wou
International Finance
Complete Questions 1, 3, 4 & 6 Pages 195-197. Submit your homework as an attachment to Drop
Box 4.1
1.
Fixed exchange rate system: exchange rates are either held constant or allowed to fluctuate
only within very narrow boundaries.
o
FIN364x
Hmwrk 7.1
3. Explain corporate motives for forecasting exchange rates. What are some limitations of using
a fundamental technique to forecast exchange rates?
Hedging decision: MNCs constantly face the decision of whether to hedge future payables a
1. As a manager how will you balance the need for establishing control in your organization with
encouraging and allowing intelligent failures?
I would use two different methods and combine them. The first being concertive
control because it allows people
2. a. With other things being equal, a high home inflation rate would affect the home countrys current
account by decreasing the current account. Per the book Consumers and corporations in that country
will most likely purchase more goods overseas (due to